Acquiring Corp Agrees to Buy 100% of the Outstanding Shares

question 110

Multiple Choice

Acquiring Corp agrees to buy 100% of the outstanding shares of Target Corp in a share for share exchange. How would Acquiring Corp determine how many new share of its stock it would have to issue?

• A) Multiply the purchase price premium paid for Target's stock by the number of shares of target stock outstanding.
• B) Multiply the share exchange ratio by the number of Acquirer shares outstanding.
• C) Add the number of Acquirer and Target shares outstanding
• D) Multiply the share exchange ratio by the number of Target shares outstanding.
• E) Divide the share exchange ratio by the purchase price premium

---

Definitions:

Graphic Images

Visual representations such as photos, charts, and diagrams intended to convey information or evoke specific responses from the viewer.

Health Warnings

Notices or advisories issued by health authorities or regulatory bodies to inform the public about the health risks associated with certain behaviors, products, or environments.

Passive Smoking

Involuntary inhalation of smoke from tobacco products used by others, often leading to health risks similar to those of active smoking.

Death Toll

The total number of deaths resulting from a disaster, disease, or other tragic event.